Vote Result

Yea Votes

Nay Votes

Vote Smart's Synopsis:

Vote to concur with Senate amendments and pass a bill that extends tax withholding requirements to business or government entities that pay independent contractors for goods or services, and specifies that the withholding rate shall be 3 percent of the payments.

Highlights:

- Exempts the the following payments from the withholding requirements (Sec. 6):

- The first $600 paid to a contractor for goods or services each year;
- Payments to tax-exempt entities and foreign governments;
- Intra-governmental payments; and
- Wage payments or any other payments subject to mandatory withholding under Section 13020 of the Unemployment Insurance Code.

- Specifies that anyone who fails to withhold taxes established under this Act is guilty of a misdemeanor, punishable by a fine of up to $1,000, imprisonment for up to one year, or both a fine and imprisonment (Sec. 3).